Gifts to the IIT (BHU) via IIT (BHU) Foundation are classified as either endowed or expendable (non-endowed). An endowed gift is money given by a donor that is to be invested in perpetuity by the Foundation, with the distributions available to spend on activities consistent with the donor intent. If pledged over multiple years, earnings from an endowment fund may be reinvested until the endowment is fully funded before any disbursement will begin.
Governance & control
IIT (BHU) Foundation’s Board of Directors (BOD) has ultimate fiduciary responsibility for investment decisions. However the BOD has created an Investment Committee (IC) which provides the oversight and management of the endowment on a day to day basis. The IC establishes and implements an investment strategy to achieve the investment and financial return objectives set by the BOD. The IC oversees portfolio asset allocation, investment structure, risk management, and performance tracking to evaluate investment strategy success.
The IC reports periodically (every quarter) to the BOD on all important Foundation fund management matters such as material changes to the investment policy, allocation targets and ranges, portfolio performance and liquidity. The Foundation’s IC has developed a written investment policy that defines portfolio strategies and goals and sets risk management parameters. High level asset allocation and past performance information will be posted on the Foundation’s website annually.